Scorecard will apply "new rules of supply-chain sustainability" to
retailer's service providers
MISSISSAUGA, ON, July 25 /CNW/ - As part of its company-wide
sustainability program, Wal-Mart Canada is spearheading collaboration among
supply-chain companies to measure and reduce the environmental footprint of
its product shipping process and logistics network. The company announced
today it will introduce its first ever Supply Chain Sustainability Scorecard
this fall to assess its network of service providers on the basis of
environmental impact, efforts and improvement.
This month, Wal-Mart Canada assembled dozens of companies, including some
of Canada's largest trucking, rail, storage and distribution suppliers, to
begin the process of quantifying various sustainability measures relevant to
its product shipping processes and practices. The meeting allowed Wal-Mart to
outline its new expectations of supply-chain service providers, and to
establish relevant and agreed categories for its upcoming scorecard.
"As a company, Wal-Mart has introduced sustainability programs and
measures throughout our business," said Lesley Smith, Wal-Mart Canada's vice
president of supply chain. "Our new rules for supply chain sustainability will
cover everything from fuel use, to facilities and equipment standards, to the
overall environmental commitment demonstrated by the companies we hire to ship
and store our products. As always, the business case and payback is twofold: a
better operation with better environmental effect."
By moving goods more efficiently, Wal-Mart Canada and its supply-chain
service providers expect to directly contribute to the company's
everyday-low-cost approach - lowering costs to ensure the lowest prices for
customers, a key to Wal-Mart's business model. At the same time, by reducing
materials, increasing efficiency, and eliminating unnecessary shipping, the
company and its suppliers will meet rising environmental standards.
In July 2006, Wal-Mart Canada and shipping supplier SCM changed the mode
of transporting goods destined for 10 stores, located in Nova Scotia and PEI,
from road to rail. This change has reduced carbon emissions by 2,600 tonnes.
For necessary road delivery, the companies converted 20 truck generators to
electric power, saving 40,000 litres of fuel. Combined, these two measures are
expected to deliver annual cost savings of more than $2 million.
By changing some shipping crates from cardboard to plastic, allowing
boxes to be used approximately 60 times instead of once, Wal-Mart Canada has
saved $4.5 million in costs, with expected waste reduction of more than
1,400 tonnes and carbon emissions reductions of 10,000 tonnes, due to the
elimination of cardboard production. This Canadian initiative has become a
best practice for other global Wal-Mart operations.
In the coming months, Wal-Mart will "footprint" its supply chain
operation, and has asked service providers to audit their respective
environmental impact related to operations on behalf of Wal-Mart Canada. This
will provide a quantifiable benchmark for future improvements.
"Our supply chain activities were already exceeding government and
industry gold standards," said Smith. "Together, with our suppliers, we've
decided we can do better and we can set new standards."
In October 2007, with the introduction of the Supply Chain Sustainability
Scorecard, Wal-Mart Canada plans to assess the businesses it hires to ship and
store its products based on four categories:- Equipment - e.g. use of sustainable alternatives, efficient engines
and tires, etc.
- Operations - e.g. enforcement of programs for recycling, vehicle
idling, oil collection, etc.
- Facilities - e.g. responsible energy use (including green power),
efficient buildings, etc.
- Corporate commitment - e.g. a vision or culture of sustainability
throughout the business.
Wal-Mart has committed to three long-term sustainability goals, globally
and in Canada:
1. To produce zero waste;
2. To be powered 100 per cent by renewable energy; and,
3. To make more environmentally preferable products available to
customers.Headquartered in Mississauga, Ontario, Wal-Mart Canada Corp. operates
290 retail operations nationwide. The company's environmental vision is to
demonstrate environmental leadership by reducing the ecological impact of its
operations through company-wide programs focused on waste, energy and
products, as well as outreach programs that preserve and enhance local
environments.
For further information: Kevin Groh, Director, Corporate Affairs,
Wal-Mart Canada Corp., (905) 821-2111 x8012
